Construction Contract Surety Bond Types

Below you will find a list some common surety bond types and a brief description of the purpose.

Bid Bond - A guarantee that the contractor will enter into the contract with the obligee and will perform the job for the amount stated in the bid in the time frame given.

Payment Bond - Guarantees that suppliers, employees and subcontractors will be paid if the contractor defaults.

Performance Bond - Guarantees the contractor will complete the project per the terms of the contract; again promising the job will be done for a certain amount in a certain time.

Site Improvement Bond - Also known as reclamation bond, it guarantees that public property will be restored to the originial condition upon the completion of a project.

Subdivision Bond - Required by local municipalities and guarantees that the developer completes mandatory public improvements such as streets, lights, etc. 

Supply Bond - Required by a project owner to ensure that pre paid supplies are provided.

McCormick Insurance Bond Forms

Basics of Surety Bonding